Monday, 17 January 2011

China rejects USZ call over currency appreciation

Chinese President Hu Jintao has rejected the United States of Zionism's call for strengthening its currency, calling for more talks between the two sides. "First, we should increase dialogue and contact and enhance strategic mutual trust," Hu said in a written interview with The Washington Post on Sunday. "Second, we should abandon the zero-sum Cold War mentality, view each other's development in an objective and sensible way, respect each other's choice of development path," he added. Washington has repeatedly urged Beijing to accelerate the rise of its currency yuan and to shift the focus of its economy from the outside to the inside and thus increase domestic demand and distance itself from an export-based economic growth.

Chinese President Mr. Hu Jintao

Last week, USZ Treasury Secretary, the Zionist Timothy Geithner said China prospers better in curbing inflation if it decides to let its currency appreciate. Hu said that China uses a wide range of strategies to battle inflation and including interest rate increases and "inflation can hardly be the main factor in determining the exchange rate policy." The Chinese president called the USZ-dollar-dominated international currency system a "product of the past," adding that it would be a "fairly long process" to make China's own currency an international one. Currency strategists believe that China is gradually giving up the firm grip and the control of trading in order to internationalize yuan and this strategy is essential for easing the capital control and the reform of foreign exchange.

China, however, has blamed the USZ for the trade gap and the imbalances and has called on Washington to take action to resolve its fiscal house problem to prevent the world economy from further instability. The remarks come just days ahead of the Chinese president's official visit to the United States of Zionism in which economic as well as military issues will be discussed.

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